Harley-Davidson Motor Co., Inc.: Defending a Piece of Domestic Pie

Harley-Davidson Motor Company was founded in 1903 by William S. Harley and Davidson brothers and has come to symbolize the all-American attributes of individuality, freedom and passion for adventure.
Harley-Davidson produced by 1950 uniquely styled motorcycles that inspired an unusually high degree of brand loyalty achieving a 60 percent to 70 percent of US market share. By 1960 Japanese motor companies hit the country with quality motorcycles for cheaper prices because of a hug structure and efficient production techniques and a strong advertising campaign.
In 1969 AMF, a recreational equipment conglomerate, bought the company and manage it focusing in its worthy products so by 1976 Harley-Davidson offered 4 models while Japanese companies offered 20 to 25 models and its market share dropt to 5 percent. But still they where leaders of the heavy bikes market -700cc and up.
With the 80s Harley-Davidson started its revitalization program with the government help. A 5-year tariff went into effect April 1983 taxing almost 50 percent on 700cc or more motorcycles imported.
Nowadays Harley-Davidson Inc. has $1.04 billion net income (up 8.7% from '05) it sold 349.196 units to retailers (21,7 percent abroad) and it has a domestic market share of 49,3% for heavyweight motorcycles. 88% of its buyers are men with a median age of 45, high income and 51% of their customers owned a Harley before.  
US market-oriented economy is marked by steady growth (3,4% in 2006) low unemployment (4,8%) and inflation (2,5%) and rapid advances in technology. The median age of its almost 300 thousand inhabitants is 36,5 years with a $43.500 GDP. The US has the largest and most technologically powerful economy in the world and is the most influencing country world wide.


SWOT ANALYSIS
Strengths Opportunities
 Strong image
 Brand loyalty
 Strong investment in research  Customization
 The only American manufacturer
 Created... [continues]

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